Question: Consider the following term structure: One year maturity is 10.03%, two year maturity is 12.61%, three year maturity is 12.9% and five year maturity is

Consider the following term structure: One year maturity is 10.03%, two year maturity is 12.61%, three year maturity is 12.9% and five year maturity is 14.97%. The price of a 5-year bond with face amount $300.69 and annual coupons at rate 8.16% is $231.26. Find the 4 year forward effective annual interest rate i₀(4,5).

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